Mastercard Incorporated ( MA Quick Quote MA - Free Report) recently teamed up with Bahrain’s digital banking technology and payment services provider NEC Payments. Through the partnership, NEC Payments has been welcomed into the Mastercard Fintech Express program. Shares of Mastercard lost 1.4% on May 25, replicating decline in broader markets.
The recent partnership seems to be a win-win situation for both Mastercard and NEC Payments. They share the common goal of not only bringing more and more fintechs under the ambit of a growing digital economy but also providing them the necessary opportunities to thrive.
Mastercard will benefit from the recent move as collaboration with several fintechs previously have helped the company in enhancing its capabilities. The company has also been able to further penetrate into the underserved areas through technological offerings. As a result, its extensive network and global presence continue to amplify with such tie-ups.
Being the first worldwide Fintech Express Partner, NEC Payments will also gain through the partnership. Working closely with Mastercard will enhance the capabilities of NEC Payments. As a result, it will be more effective in serving the financial services industry across the Gulf Cooperation Council (GCC), broader EMEA region and North America.
Mastercard has always been committed to providing necessary assistance to startups through Mastercard Accelerate portfolio. The assistance ranged from offering technological help to helping them in rolling out new products and enhanced payments solutions. It has also undertaken substantial investments for supporting growth prospects of fintechs.
Over the passage of time, several fintechs including Marqeta, Paymentology, Global Processing Services (GPS) and others have joined Mastercard Fintech Express program.
The global fintech market exhibits ample scope for growth. The reason can be attributed to substantial investments undertaken by banks and firms in technology-backed solutions and, use of advanced technologies like application programming interfaces (APIs), AI and blockchain. This helps them to launch cost-effective products and solutions best suited to the unique needs of each customer.
Per a report by Research and Markets, the Global Fintech Market is expected to witness a CAGR of 23.6% over the 2020-2025 period.
It’s worth mentioning that Mastercard has been the preferred choice of partners for fintechs owing to its strong brand name, extensive network and global presence. Through Mastercard Accelerate portfolio, the company aims to forge alliance with emerging businesses with a view to digitally connect 1 billion people within 2025.
Another company in the same space,
Visa Inc. ( V Quick Quote V - Free Report) has launched an accelerator program, which gives opportunity to participating startups to progress with their expansion plans. Other companies such as Global Payments Inc. ( GPN Quick Quote GPN - Free Report) and American Express Company ( AXP Quick Quote AXP - Free Report) have also extended a helping hand toward startups by rolling out advanced payments and software solutions. Zacks Rank & Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 22.5% in a year compared with the
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